UAE Financial Regulation Framework Flashcards

Which UAE regulation specifically addresses market manipulation and insider trading?

Answer: SCA Board Decision No. 3/R.M. of 2020 (Market Conduct Regulations)

The SCA's Market Conduct Regulations prohibit insider trading, market manipulation, and other forms of market abuse in onshore UAE securities markets, aligning with international standards.

What obligation does 'tipping off' prohibition impose on UAE financial institutions?

Answer: Prohibition on informing a customer or third party that an STR has been filed about them

Tipping off prohibits financial institutions and their staff from disclosing to a subject or any other person that an STR has been filed or that an investigation is underway, to avoid alerting criminals.

The UAE's 'Hawala' registration requirement means that:

Answer: Informal value transfer operators must register with the CBUAE

The CBUAE requires Hawala operators and other informal value transfer service providers to register, enabling oversight and AML/CFT compliance monitoring of these channels.

Under the UAE's AML framework, 'designated non-financial businesses and professions' (DNFBPs) include:

Answer: Real estate agents, lawyers, accountants, and dealers in precious metals

DNFBPs such as real estate agents, legal professionals, accountants, and precious metals dealers face AML/CFT obligations because they can be used as conduits for money laundering.

Which document must a UAE-licensed financial firm maintain for each client as part of CDD requirements?

Answer: Customer Due Diligence (CDD) file including identity verification and business relationship purpose

CDD requires firms to collect, verify, and maintain records of customer identity, beneficial ownership, nature of the business relationship, and purpose of transactions, forming a complete CDD file.

What triggers enhanced due diligence (EDD) requirements under UAE AML regulations?

Answer: Higher-risk customers including PEPs, correspondent banks, and non-face-to-face relationships

EDD is required for higher-risk situations such as politically exposed persons (PEPs), cross-border correspondent banking, non-face-to-face business, and customers from high-risk jurisdictions.